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Resources

Feature Articles

  • 46th Annual Fairfax County Valor Awards
  • Accounting For Crypto Assets
  • Alabama Federal Judge Rules Corporate Transparency Act (CTA) Unconstitutional, Enforcement Halted
  • Megan McAtee Joins MillerMusmar CPAs as Audit Manager
  • Simplifying Depreciation Deductions for Business Vehicles in 2024
  • MillerMusmar CPAs Proudly Sponsors “Titans of the Toll Road: How Northern Virginia’s Space Economy is Transforming the Future” Event
  • Breaking: Temporary Suspension of CTA’s BOI Reporting Requirements
  • A Comprehensive Guide to Government Contract Accounting
  • Our New Secure Client Portal: CANOPY
  • BENEFICIAL OWNERSHIP REPORTING
  • MillerMusmar CPAs is proud to be Platinum Sponsor of Titans of the Toll Road
  • 45th Annual Valor Awards
  • Homebuilders Can Benefit from Expansion of Energy Efficient Home Credit
  • Six Steps to Banking Failure- Silicon Valley Bank (SVB) What You Should Do To Protect Your Money.
  • IRS Issues Standard Mileage Rates For 2023
  • SBA RULE MODIFCATIONS UPDATE GOVERNNING 8A FIRMS
  • Taxability of Lawsuit Settlements
  • INFLATION REDUCTION ACT HIGHLIGHTS
  • Under legislation enacted by the 2022 General Assembly Virginia established a new elective pass-through entity (“PTE”) tax.
  • Tax Law Changes effective 2022
  • SBA Issues Final Rule On Calculation Of Average Annual Receipts For The Purposes Of Certain Size Standards
  • IRS Suspends Several Automated Collection Notices
  • Don’t forget to factor 2022 cost-of-living adjustments into your year-end tax planning
  • CHILD TAX CREDIT
  • SILVER MEDAL OF VALOR
  • Taxpayers can protect themselves from scammers by knowing how the IRS communicates
  • AASHTO Overhead Rate Audits
  • SBA raises EIDL loan limit to $500,000
  • IRS Announces New Extended Tax Deadline for Individuals
  • Maryland Extends State Income Tax Filing Deadline to July 15th
  • Business Education Series: PPP Round Two – What You Need to Know
  • SBA Issues Extensive Final Rule Revising Several Small Business Contracting Regulations
  • 2020 depreciation limits for cars and trucks are issued
  • IRS Won’t Extend Deadline Again! Tax Returns ARE Due by July 15
  • New Virginia Employment Law Update
  • IRS announces Form 1040-X electronic filing options coming this summer; major milestone reached for electronic returns
  • Understanding the 2020 Coronavirus Relief Bill (the CARES Act)
  • FAQs About COBRA Insurance Coverage
  • Federal Income Tax Filing Date postponed to July 15
  • Attention Local Workers Whose Job Has Been Affected by the Coronavirus
  • Emergency Paid Sick Leave Act (EPSLA)
  • The Three Step Process: Disaster Loans
  • U.S. Postpones April 15 Tax Payments for 90 Days for Most Americans
  • NEW TAX DEADLINE IN THE WORKS
  • SBA’s NEW YEAR RESOLUTION ENFORCEMENT!
  • New Law Helps People Save For Retirement; Other Retroactive Changes Impact Many Taxpayers
  • IRS Increases Visits To High-Income Taxpayers Who Haven’t Filed Tax Returns
  • Guidance and Enforcement Put Virtual Currencies Front and Center
  • Proposed regs. Issued on Meal and Entertainment Expense Deductions
  • IRS Issues 2020 Standard Mileage Rates
  • Form 1040-SR: Seniors Get a New Simplified Tax Form for 2019
  • IRS willing to consider requests for relief from double taxation related to repatriation
  • IRS Lowers Mileage Rates for 2020 Deductible Vehicle Use
  • Jan. 31 filing deadline remains for employer wage statements, independent contractor forms
  • IRS: Eligible employees can use tax-free dollars for medical expenses
  • Overview VA SIT update
  • IRS Advises Taxpayers To Be On The Lookout For New SSN Scam
  • IRS Provides Guidance on Paying Repatriation Tax
  • Fundamentals of Government Cost Accounting
  • MillerMusmar’s 10th Consecutive Year as a Pinnacle Sponsor of the Taste of Reston.
  • 2018 YEAR-END TAX PLANNING FOR INDIVIDUALS
  • Foreign Financial Asset Reporting Guidance Matrix Form 8938 and/or FBAR for Filings
  • Certain Fringe Benefits Provided by Not-for-Profits May Be Considered Taxable Income

Newsletters

Our regularly updated newsletter provides timely articles to help you achieve your financial goals.

New Law Helps People Save For Retirement; Other Retroactive Changes Impact Many Taxpayers

The Further Consolidated Appropriations Act, 2020, enacted December 20, 2019, includes a number of tax provisions designed to encourage more people to save for retirement. It also includes a number of other tax changes including the retroactive renewal of some tax benefits that had expired at the end of 2017.

The new law helps people save for retirement; other retroactive changes impact many tax-payers federal income tax returns. They may also qualify to claim them for tax-year 2018 by filing an amended return.

Here is a quick rundown of key provisions in the new law:

Contributing to a traditional IRA

Many older taxpayers can now choose to contribute some or all of their compensation to a traditional individual retirement arrangement (IRA). Starting in 2020, the new law eliminated the long-standing 70½ age limit for making contributions to traditional IRAs. There is no age limit for contributions to a Roth IRA.

As a result, people over age 70½ who are still working or running a business can now choose to contribute to a traditional IRA beginning in 2020. The 70½ age limit still applies to those now contributing to a traditional IRA for the tax year 2019 before April 15, 2020, filing deadline.

IRA Distributions can start later

People with traditional IRAs, as well as 401(k) plans and other workplace retirement plans, may be able to wait until they turn age 72 before taking required minimum distributions (RMDs) from their IRAs and plans.

For those who turned age 70½ prior to January 1, 2020, their RMDs must begin by April 1 of the year after they turned age 70½. For example, for someone who turned 70½ in 2019, they must take their first RMD (for 2019) by April 1, 2020, and their second RMD (for 2020) by Dec. 31, 2020.

For those who were age 70½ or younger on Jan. 1, 2020, their first RMD is not due until April 1 of the year after they turn age 72. For example, for those who turn 72 on July 1, 2021, they must take their first RMD (for 2021) by April 1, 2022, and their second RMD (for 2022) by December 31, 2022.

IRA withdraw for Birth or adoption of a child

Beginning in 2020, an IRA owner or a participant in a workplace defined contribution plan, such as a 401(k) or 403(b) plan, can withdraw up to $5,000 for the birth or adoption of a child without incurring the usual 10% additional tax on early distributions. The distribution must be made within one year after the child is born or the adoption is finalized and cannot be from a defined benefit plan. Any time after receiving the distribution, the IRA owner or plan participant may generally recontribute any portion of the distribution as a rollover contribution to an eligible retirement plan, including an IRA.

New rules for beneficiaries

Fewer beneficiaries of IRAs and workplace retirement plans such as 401(k) and 403(b) plans will qualify to receive distributions over their lifetime. Many will need to withdraw all assets within 10 years after the death of the IRA owner or the retirement plan participant. Exceptions to the 10-year rule apply to surviving spouses, minor children, people who are disabled or chronically ill, and those who are not more than 10 years younger than the decedent.

The old distribution rules continue to apply where the IRA owner or plan participant died before 2020, except a special rule, applies to distributions after the death of a beneficiary who dies after 2019.

529 Changes

More expenses now qualify for tax-free and penalty-free withdrawals from a qualified tuition program, also known as a 529 plan.

Amounts can be withdrawn to pay principal or interest on a designated beneficiary’s or their sibling’s student loan. The amount of distributions for loan repayments of any individual is limited to $10,000 lifetime. Interest paid with these funds does not qualify for the student loan interest deduction.

In addition, a 529 plan can now be used to pay qualifying expenses for a designated beneficiary to participate in an apprenticeship program that is registered and certified by the U.S. Department of Labor. Qualifying expenses are expenses for required fees, books, supplies, and equipment.

Because these changes are retroactive to 2019, any distributions during 2019 that meet these guidelines also qualify for tax-free and penalty-free treatment.

Tax benefits extended through 2020

Many tax benefits that expired at the end of 2017 have now been extended through 2020. As a result, eligible taxpayers can claim them on the 2019 return they are filing this tax season. In addition, eligible taxpayers can claim them on an amended return (Form 1040X) for 2018. These include the tuition and fees deduction, the deduction for mortgage insurance premiums for eligible homeowners, the exclusion for debt canceled on a principal residence and the nonbusiness energy credit for homeowners who install energy-efficient windows, doors, insulation, and furnaces.

Other changes

The new law includes a number of other changes that affect both individuals and businesses. They include modification of the so-called “kiddie tax,” changes to various disaster tax relief provisions and an extension of business tax benefits, such as the employer credit for paid family and medical leave and the Work Opportunity Tax credit for employers who hire categories of workers with employment barriers. Further details will be available soon on IRS.gov.

For more information please feel free to contact us at info@millermusmar.com or call us at 703-437-8877.

MillerMusmar, CPA’s is an established accounting firm with offices in Reston, and Virginia. We have a twenty-year history of providing top quality auditing, tax, and accounting services to clients throughout the Washington Metropolitan area and beyond. By combining the expertise of a mid-sized firm with the personal attention, we are both large and small enough to deliver the responsive service our clients need. For more information, please visit our website at  www.MillerMusmar.com

 

Please feel free to contact us to discuss how we can work with you to achieve your goals.
MillerMusmar is committed to the professional standards of
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Reston, VA Office

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